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How to Calculate Duties and Taxes on Imports to Croatia

Country: CroatiaCurrency: Euro (€, EUR)Official Authority: Croatian Customs Administration (Carinska uprava)

How to Calculate Duties and Taxes on Imports to Croatia involves understanding the country's adherence to the European Union's (EU) Common Customs Tariff and VAT regulations. Import duties and taxes depend on the product's classification (HS Code), its customs value, and its country of origin. The Croatian Customs Administration (Carinska uprava) enforces these rules. A key factor is the duty de minimis threshold of €150, below which no customs duty is charged. However, the tax de minimis is effectively €0, meaning Value Added Tax (VAT) is due on all imports, regardless of value.

Understanding Import Duties in Croatia

Customs duties in Croatia are calculated based on the EU's Common Customs Tariff (CCT) for goods imported from outside the EU. The specific duty rate is determined by the product's classification using the 10-digit TARIC code, which is the EU's integrated tariff system built upon the international 6-digit Harmonized System (HS) code. The duty rate can be significantly reduced or eliminated entirely if the goods originate from a country with which the EU has a Free Trade Agreement (FTA) or if they qualify under the Generalized Scheme of Preferences (GSP). Proper documentation, such as a Certificate of Origin, is essential to claim these preferential rates.

The process to calculate import tax in Croatia begins with determining the Customs Value. For the purpose of calculating customs duties, Croatia, following EU rules, uses the CIF (Cost, Insurance, and Freight) valuation method. This means the dutiable value includes the cost of the goods, the cost of transport (freight), and the cost of insurance up to the point of entry into the EU customs territory. The calculation of the total landed cost involves three main components: Customs Duty, Value Added Tax (VAT), and sometimes Excise Duty.

How import duty is calculated in Croatia:

  1. Customs Duty: Applied to the CIF value of the goods. If the total value of the shipment is €150 or less, the shipment is exempt from customs duty (Duty De Minimis).
  2. Value Added Tax (VAT): The standard VAT rate in Croatia is 25%. VAT is calculated on the sum of the Customs Value (CIF) plus the Customs Duty. Unlike the duty, VAT is due on all imports, regardless of value, as the VAT de minimis threshold was removed in 2021.
  3. Excise Duty: Applied to specific goods like alcohol, tobacco products, and energy products, and is added to the total cost before VAT is calculated.

Importers must use the correct 10-digit import classification code (TARIC) to accurately determine the applicable duty rate. The customs declaration is processed through the EU Electronic Customs Systems, managed nationally by the Croatian Customs Administration. For B2C eCommerce, the Import One Stop Shop (IOSS) is a special low-value shipment regime that allows the seller to collect the VAT at the point of sale for shipments up to €150, simplifying the process and avoiding border collection fees for the buyer.

Calculate Duties and Taxes on Imports to Croatia

  • Determine the Customs Value (CIF): Add the Cost of Goods + Shipping/Freight + Insurance.

  • Calculate Customs Duty: Apply the 10-digit TARIC code duty rate to the Customs Value (CIF). If the CIF value is €150 or less, the duty is €0.

  • Calculate the VAT Base: Add the Customs Value (CIF) + Customs Duty + any applicable Excise Duties.

  • Calculate VAT: Apply the standard 25% Croatian VAT rate to the VAT Base. (Note: VAT is due on all imports, regardless of value, unless the IOSS scheme was used by the seller for shipments up to €150).

Example Scenarios

  • Shipment Value (CIF) = €100 (Non-EU origin, B2C): Duty is €0 (below €150 de minimis). VAT is due on €100 (VAT Base), collected either by the seller (via IOSS) or by the carrier/customs at import.

  • Shipment Value (CIF) = €500 (Non-EU origin, 5% Duty Rate): Duty is €25 (€500 * 5%). VAT Base is €525 (€500 + €25). VAT is €131.25 (€525 * 25%). Total Import Charges = €156.25.

Common Mistakes to Avoid

  • Misclassifying the goods: Using an incorrect 6-digit HS code instead of the required 10-digit TARIC code can lead to incorrect duty rates and customs delays.

  • Ignoring the VAT de minimis change: Assuming a low-value shipment is exempt from VAT. VAT is always due, even on low-value goods, unless the seller uses the IOSS scheme.

  • Failing to provide proof of origin: Not including a valid Certificate of Origin to claim preferential (reduced or zero) duty rates under EU Free Trade Agreements.

Special Rules

Croatia's customs procedures are governed by the EU's Union Customs Code (UCC). Key special rules include the Import One Stop Shop (IOSS) for B2C eCommerce, which streamlines the calculation and payment of VAT for shipments up to €150. Additionally, goods imported into designated Free Zones in Croatia may be stored, processed, or re-exported without being subject to customs duties, VAT, or other charges until they are released into the Croatian/EU market.

People also ask

What is the import tax calculator Croatia uses?

Croatia does not have a single public 'import tax calculator.' Calculations are based on the EU's Common Customs Tariff (TARIC) and the standard 25% VAT rate, applied to the CIF customs value. The Croatian Customs Administration manages the official calculation.

What is the VAT rate on imports to Croatia?

The standard Value Added Tax (VAT) rate on imports to Croatia is 25%. Reduced rates of 13% and 5% apply to specific categories of goods, such as certain foodstuffs, books, and medicines.

Is there a duty-free limit for imports to Croatia?

Yes, there is a duty-free limit (Duty De Minimis) of €150 for customs duties on non-commercial imports. However, VAT is due on all imports, regardless of value.

What is the customs valuation basis in Croatia?

The customs valuation basis used for calculating import duties in Croatia is the CIF (Cost, Insurance, and Freight) value, which includes the cost of the goods, shipping, and insurance up to the EU border.